Golf Driving Ranges and Family Fun Centres in Canada Industry Market Research Report Now Available from IBISWorld

(August 17, 2014)

New York, NY (PRWEB) August 17, 2014

The Golf Driving Ranges and Family Fun Centres industry has grappled with high fixed operational costs, coupled with volatility in consumer attendance rates, which has hampered industry revenue growth over the past five years. According to IBISWorld Industry Analyst Sarah Turk, with leisure time declining over the five years to 2014, industry operators have struggled to attract time-strapped consumers due to mounting competition from other leisure activities, such as movie theatres and bowling alleys. Nevertheless, golf driving ranges have benefited from consumers having less leisure time, which can be attributed to golf driving ranges enabling individuals to practice their golf swing with less time required, compared with playing nine to 18 holes on the golf course. To mitigate competition from other leisure activities, such as at home video games, many family fun centres have moved away from video games to redemption oriented gaming, which dispense tickets that patrons can use to purchase merchandise.

While this trend has caused the industry to incur substantial costs related to updating old gaming technologies, the industry still has been poised favourably for growth over the next five years. Nevertheless, as many Canadian municipalities have allocated urban land toward industrial and office spaces, rather than for retail spaces and industry establishments, many operators have contended with limited space for their establishments. Furthermore, this trend has slightly constrained operators' ability to locate in proximity to large retailers, such as shopping malls, which typically drives customer traffic to industry establishments. Due to this trend, industry revenue is expected to over the five years to 2014, Profit is also expected to contract in 2014. This is largely due to many golf diving ranges and family fun centres offering more promotions, such as coupons and discounted pricing for off-season admission tickets, which have cut into industry profitability, says Turk.

In the five years to 2019, industry revenue is forecast to grow. Favourable growth in the number of individuals aged 17 and younger, which accounts for the largest share of industry revenue, coupled with more families allocating their limited leisure time toward family activities, will spur industry revenue growth.

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